Pork Sector Stocks Rally as Live Hog Prices Rebound from Lows, Industry Capacity Reduction Continues

Stock News07-10

Shares in the pork sector are broadly higher today. At the time of writing, DEKON AGR (02419) is up 4.97% at HK$49, COFCO JOYCOME (01610) has gained 3.92% to HK$1.06, and MUYUAN (02714) has risen 3.26% to HK$32.32.

On the news front, data indicates the national live hog price reached 11.36 yuan per kilogram on July 9th, marking the 11th consecutive day of gains and representing a cumulative increase of over 20% from the low point in April.

Analysis suggests that under the guidance of industrial policies for the hog sector, capacity reduction through policy regulation may proceed concurrently. Furthermore, the growth rate of sow productivity, represented by metrics like PSY, may slow down in phases. This year could witness the third significant round of capacity reduction since 2021, which is expected to help repair the fundamentals and valuations of the hog farming industry.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment